Ethics in performance management system

Ethics, Performance Measures, And The Balanced Scorecard

Performance measures and ethics are related and are key factors for management. Performance measuring is to concisely report certain levels of service from employees by their managers/management team. Any performance management is to analyze, communicate information, and monitor performances whither it is for financial (cost, revenue) and non-financial (cycle times, quality of product produced) purposes (M.U.S.E.com, 2018). It is a process results of activity, analyze, as well as collect information on performance to track progress on during a time period for planned results. These results are used for decision-making on a program, advance organizational learning, and allocate processes (Brown, M., Stilwell, J., N.D.). Any performance measurements should also include the flexibility to change within certain conditions an organization is facing, giving feedback to the employees on their performance being discussed, and any tools that will be effective for them. Ethical behaviors and methods should always play the stage and outlook on performance measures since it does tie into an employee’s compensation which is again based off of their daily performances, their work ethic, and teamwork.

At times, employees or programs are evaluated and given the wrong performance measurements to show an excellent performance when in reality it is not as excellent. When tying compensation to the performance measurements, it should be a focus on long term vision by management and what can possibly be improved to get to those goals. The focus on a long term vision for the company’s goals can get lost which means then the goal is geared towards their present target no longer the future. , this can get to managing the target even if that means being unethical. When vision is out of focus, it will distort the vision and then take path towards the wrong things, which means the management system can be used poorly, then bad things will begin to occur with performance management and measures given. An example of unethical decision on a wrong measurement tying in compensation factor is when an employee is measured on quality and quantity of food served in their restaurant. All foods should be cooked and ready to be served at any given time and thrown out after a certain period time. An employee has high quality of food being served but the quantity was not there because the employee would cook the food when ordered not enough already ready for the customers. The employee was making sure that he was not throwing food if needed, which was acceptable in the industry. So he was awarded as good performance but yet down the line the business went in the hole due to the complaints from customers because of the long wait time for food to be served. This employer received higher compensation for the moment only from having quality of food when he was to be measured for equality with the quantity of food (Amanet.com, 2018).

EEC is in the middle of finalizing a decision that can and will change their cost, investments, stakeholders, budgeting and performance management and measurements. There are a few things that EEC can approach and implement with performance measurements for employees to hold their focus on long term goals. One approach would be awarding the employees by observed ethical behaviors and encouraging other employees to speak on ethical behaviors witnessed. The EEC management team would review performances that were taken and given to set new goals for the upcoming year to communicate with their employees, this will create seriousness and pride (Hill, B., 2013). Another focus for EEC to sustain and keep ethical behaviors and ethical decisions to performance measures is to follow the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act was established to improve corporate responsibilities in financial reporting, disclosure of financial information, conflict of interest and accountability on fraud, and punishment for white collar workers. The remembrance of this act when it comes to unethical behaviors with compensation, using corporate money for personal use, and not reporting accurately according to performances can result in an organization crisis of failure (M.U.S.E., 2018).

American Management Association, (2018) Retrieved by June 10, 2018, https://www.amanet.org/training/articles/when-measurement-goes-bad.aspx

Brown, M., Stilwell, J., (N.D.). The Ethical Foundation of Performance Measurement and

Management. Retrieved on June 10, 2018, http://jasonstilwell.com/articles/The_Ethical_Foundation_of_Perfor.pdf

Colorado technical University. (2018). M.U.S.E. Ethical Implications of Decisions. Retrieved on June 10, 2018, https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx?MID=11105750&aid=11105758

Colorado technical University. (2018). M.U.S.E. Performance Measurement System. Retrieved on June 10, 2018 https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx?MID=11105750&aid=11105758

Hill, B., (2013). What are Ethical Performance Measures? Retrieved on June 10, 2018, https://yourbusiness.azcentral.com/ethical-performance-measures-16400.html